Tsuga Raises $35 Million Series A

Tsuga, the leader in AI-Native Resilient Observability, today announced it has raised $35 million in a Series A funding round. The round is led by existing investor Singular, with participation from General Catalyst alongside new investors DST Global Partners and Quantumlight. Picus and Databricks Ventures are among the additional investors participating in the round. The raise will enable Tsuga to scale its GTM motion and accelerate the rollout of the platform powering a new generation of AI agents

The observability industry has run the same playbook for decades: ingest customer telemetry, store it in a third party cloud, and charge exponentially more as volumes grow. For most of that time, customers tolerated it. But the AI era has made it untenable: every agent loop, every autonomous deployment, every token interaction generates observability data at volumes legacy platforms were never built to handle. Ingestion costs compound. Sampling increases as customers manage their spiraling spend. Governance gaps open as sensitive AI interaction data flows to third-party clouds. The platforms that dominated the last era are not struggling because of a feature gap. They are struggling because their entire architecture was built on an assumption the AI era has made obsolete.

Tsuga was built to replace that assumption entirely. The platform deploys inside the customer's own cloud account, across Microsoft Azure, AWS, Google Cloud, and regional sovereign clouds, so telemetry never leaves their environment. There is no infrastructure tax, no duplication cost, and no sampling. Pricing is a single transparent rate per GB of consumption, and costs fall as Tsuga's forward-deployed engineers tune the environment over time.

"The incumbents built good businesses on a model that no longer works. Sending your telemetry to a vendor's cloud made sense when data volumes were manageable and AI was not writing and deploying your code. Neither of those things is true any more. Every customer we speak to is paying more for observability than they were two years ago and getting less reliable coverage. We built Tsuga to end that."
Gabriel-James Safar, Co-Founder and Chief Executive Officer, Tsuga

Because telemetry never leaves the customer's environment, the AI built on top of it never has to either. Tsuga delivers a unified view of classic application and infrastructure traces alongside AI agent traces, prompt and token visibility, confidence metrics, and agent call graphs, all in one platform, all inside the customer's own perimeter. Automated root cause analysis runs on complete, unsampled data. The Tsuga MCP server and CLI give engineering teams the building blocks to construct their own agents on that foundation, inside their own security boundary, without sending data anywhere it should not go.

Tsuga is a software and a service business: the new SaaS. Forward-deployed engineers work as an extension of each customer's team, continuously tuning their observability environment and identifying opportunities to reduce the volume of data processed and retained.

"By staying out of the data path entirely, Tsuga removes every structural disadvantage the rest of the market is built on. The infrastructure tax disappears. The sampling compromise disappears. The AI governance gap disappears. What is left is a better platform at a lower cost, inside the customer's own environment."
Henri Tilloy, Singular

Six months after exiting stealth, Tsuga has grown to several millions in revenue with average contract values in six figures, and customers including frontier model labs like Black Forest and enterprise customers like Le Monde, Camunda, and Buk.

"Tsuga has the architectural scalability, flexibility and distributed platform support that the coming generation of AI-native applications and agents require in their observability platform. This is a step-function change only possible because of their innovation across the full stack, from the storage layer to the business model."
Alexandre Momeni, Partner of General Catalyst

NOTES TO EDITORS

About Tsuga

Tsuga is the leader in AI-Native Resilient Observability. Founded in Paris in 2024, the platform deploys inside the customer's own cloud across any environment so telemetry never leaves their control, infrastructure costs are eliminated at source, and AI runs on complete, unsampled data. Its customers include Le Monde, Camunda, Buk, and Black Forest Labs. See everything. Share nothing. tsuga.com

About Singular

Singular is a venture capital firm investing from Seed to Series B in ambitious founders building category-defining technology companies. Born in Europe and built for the world, Singular partners closely with entrepreneurs from the earliest stages to help them scale globally.

About General Catalyst

General Catalyst is a global investment and transformation company with venture at its core. We meet the most ambitious founders where they are from seed to growth stage and beyond to drive resilience and applied AI. With offices in San Francisco, New York City, Boston, Berlin, Bangalore, London, and Washington, D.C., we support entrepreneurs with a long-term view who challenge the status quo, and give them access to insanely powerful advantages. General Catalyst has supported the growth of 800+ businesses, including Airbnb, Anduril, Anthropic, Applied Intuition, Commure, Glean, Guild, Gusto, Helsing, Hubspot, Kayak, Livongo, Mistral, Ramp, Samsara, Snap, Stripe, Sword, and Zepto.

About Quantumlight

Quantumlight is a venture capital firm investing in transformative technology companies at the frontier of infrastructure, AI, and enterprise software.

About Picus

Picus Capital is a global venture capital firm backing exceptional founders building category-defining technology companies.

About Databricks Ventures

Databricks Ventures invests in innovative companies that share our view of the future for data, analytics and AI. With focus is on supporting early- and growth-stage companies that are empowering AI in innovative ways on top of or alongside the Databricks Data Intelligence Platform. These companies share our vision for an open ecosystem and our commitment to harnessing the power of data intelligence to create the next generation of data and AI-powered companies.